City Pleased With Lodging Tax Revenue

January 9, 2008 by Justin Leighty
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A 3% lodging tax on hotel guests and campers at the Sinclair Lewis campground in Sauk Centre, Minn., yielded $18,000 between its inception in July and November.
“It has surprised me,” Warren Stone told fellow Sauk Centre City Council members at Wednesday’s (Jan. 8) meeting. “We’re doing quite well.” Stone is the council’s liaison to the city’s convention and visitors bureau board, according to the Sauk Centre Herald.
The tax isn’t expected to generate as much money over the winter months because the campground is closed between Oct. 15 and May 1.
Meanwhile, the city council adopted increases in the 2008 fee schedule, including a raise in daily, weekly, monthly and seasonal camping rates.
The council approved a 30% increase in seasonal rates, from $1,000 to $1,300. Monthly rates increased a modest 7%, from $375 to $400. The increase was made to help cover sales tax, which is included in the rate. Weekly rates increased from $100 to $110 to cover sales and lodging tax, which totals 9%. Daily rates were raised from $25 to $27.50 for the same reason. Sales and lodging taxes do not apply for seasonal rates, and only sales tax applies for monthly rates.
The 70-site campground, located 100 miles northwest of Minneapolis, currently has a waiting list of more than 40 for seasonal sites.